Ladies and gentlemen, thank you for standing by. Welcome to Comtech Telecommunications Corp. Second Quarter Fiscal 2013 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, Friday, March 8, 2013. I would now like to turn the conference over to Ms. Maria Salerno of Comtech Telecommunications. Please go ahead, ma'am.

Maria Salerno

Thank you, and good morning. Welcome to the Comtech Telecommunications Corp. conference call for the second quarter of fiscal year 2013. With us on the call this morning are Fred Kornberg, President and Chief Executive Officer of Comtech; and Michael Porcelain, Senior Vice President and Chief Financial Officer.

Before we proceed, I need to remind you of the company's Safe Harbor language. Certain information presented in this call will include, but not be limited to, information relating to the future performance and financial condition of the company; the company's plans, objectives and business outlook; the plans, objectives and business outlook of the company's management. The company's assumptions regarding such performance, business outlook and plans are forward looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. Any forward-looking statements are qualified in their entirety by cautionary statements contained in the company's Securities and Exchange Commission filings.

I am pleased now to introduce the President and Chief Executive Officer of Comtech, Fred Kornberg. Fred?

Fred Kornberg

Thanks, Maria. Good morning, everyone, and thank you for joining us on this call. Our second quarter results were impacted by a very weak global economic environment and the continuing funding paralysis of sequestration. As announced yesterday afternoon, we reported second quarter results of $74.6 million in revenues and a GAAP diluted EPS of $0.14. Our adjusted EBITDA for the second quarter was $10.1 million.

On our last conference call, we indicated that we expected that the U.S. government would make significant progress on its budget issues and that business conditions would improve. Clearly, this did not happen. And in recent months, in fact, we believe that business conditions have actually deteriorated. We believe that failure to resolve the sequestration and related U.S. government budget issues, first by December 31, 2012, and once again by March 1, 2013, has also resulted in increased uncertainty among our global customer base. At this point, because we're navigating through a very weak difficult global economy, we cannot predict the effect of sequestration on our markets, and we're continuing to experience weak order flow, we now believe that the revenues in fiscal 2013 will be in the range of $320 million to $330 million, and GAAP diluted EPS will be in the range of $0.80 to $0.92. Our adjusted EBITDA is expected to be in the range of $48 million to $52 million.

Despite lower revenue and EBITDA guidance for fiscal 2013, our long-term growth plans have not changed. We still believe that our products and services remain well positioned due to a number of factors, including the continuance -- the continued reliance by our customers on our advanced communications products and systems, the continued shift toward information-based, network-centric warfare and the need for developing countries to upgrade their communications infrastructure.

In light of our long-term growth expectations, our Board of Directors approved a dividend for our third quarter of fiscal 2013 of $0.275 per common share. This dividend is expected to be paid on May 21, 2013, to stockholders of record on April 19, 2013. To date and over the past 10 consecutive quarters, we have paid out approximately $57.1 million of dividends and continue to believe that our dividend program is an excellent way to return capital to our stockholders.

In addition, during the second quarter of fiscal 2013, we repurchased approximately 400,000 shares of our common stock at an aggregate cost of $10.5 million. And in early February, we completed our $250 million stock repurchase program. As we announced in December 2012, our board also authorized a new $50 million stock repurchase program, and we have repurchased approximately $5 million under this new program to date.

Now let me turn it over to Mike Porcelain to provide a brief overview of our second quarter financial results, and then I will talk more specifically about each of our 3 business segments. Mike?

Michael D. Porcelain

Thanks, Fred, and good morning, everyone. I'll walk you through the Q2 results and provide some commentary on our updated 2013 business outlook.

During Q2, we generated revenues of $74.6 million, of which 32.8% were for U.S. government end users, 54.3% were for international end users, with the remainder being for domestic, commercial end customers.

Let me provide some color on sales by segment. Net sales on our Telecom Transmission segment were $45.8 million in Q2 of fiscal 2013 as compared to the $51.3 million we achieved in Q2 of last year, representing a decrease of 10.7%. This decline is attributable to significantly lower sales of our Satellite Earth Station products, which were partially offset by higher sales of our over-the-horizon microwave system product line.

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